CR 03-172 Special Law Authorizing TIF Dist 2-11
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. November 19,2003 HOPKINS Council Report 2003-172
SPECIAL LEGISLATION EXTENDING DURATION OF TAX INCREMENT
FINANCING DISTRICT 2-11 AND THE FIVE-YEAR RULE
Proposed Action
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Staff recommends approval of the following motion: adopt Resolution 2003-102, approving
special law authorizing extension ofthe duration of Tax Increment Financing District 2-11 and
extending the five-year rule.
Overview
Tax Increment Financing District 2-11 is a redevelopment district approved by the City in
October 1998, and the original term ofthe district is 25 years.
Following establishment of the district, the City worked with Medica for over a year to facilitate
relocation of their corporate headquarters to the North Annex property. They unfortunately
made a decision not to proceed with thisproject.
. . The City and property owner are presently working together to find a new office user for the site.
We assume this overall effort will take time in today's economic market. As a result, the City
requested and secured approval of a bill in the last legislative session allowing for a four-year
extension of both the five-year rule and the duration ofTIF District 2-1 i.
The language ofthe bill also requires approval by the Hopkins School District and Hennepin .
County. The School District has approved a resolution supporting the bill, and the bill will be
considered by the Hennepin County Board on December 16.
Supportin2 Documents
. Resolution 2003-102
Jim Kerrigan I
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Planning & Economic evelopment Director
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Financial Impact: $ N/A _ Budgeted: Y IN _ Source:
Related Documents (ClF, ERP, etc.):
Notes:
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City Council Report 2003-172, November 19, 2003 - Page 2
. Alternatives
The City Council has the following alternatives regarding this action:
1) Approve the action as recommended by staff.
2) Deny approval of the resolution supporting the extension. With this action the City would be
able to collect increment for approximately 21 more years; however, all expenditures that the
tax increment would reimburse must be completed by April 2004.
3) Continue the item for additional information. It needs to be noted that all approvals (City,
County, and School District) need to be completed prior to the next legislative session.
Heooepin Countyhas stated that they will not take action on the resolution until the City
Council has approved it.
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. CITY OF HOPKINS
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO. 2003-102
RESOLUTION APPROVING SPECIAL LAW AUTHORIZING
EXTENSION OF THE DURATION OF TAX INCREMENT
FINANCING DISTRICT NO. 2-11 AND EXTENDING THE FIVE YEAR RULE
Section 1. Recitals.
WHEREAS I the 2003 Minnesota Legislature enacted a special law, Laws of Minnesota
2003, Chapter 127, Article 10, Section 31, (being Senate File No. 1505) (the lISpecial Law")
providing that the City of Hopkins may extend the duration of Tax Increment District No.2-II (the
"TIP District'l) for an additional four years and extending the time to undertake activities pursuant to
Minnesota Statutes, section 469.1763, subd. 3, to a date nine years from certification of the TIP
District.
WHEREAS, pursuant to Minnesota Statutes, Section 645.021, the Special Law is not
. . effective without a resolution adopted by majority vote of all members of the governing bodies of
the local government units affected and by filing with the Secretary of State a certificate required by
statute.
WHEREAS, pursuant to Minnesota Statutes, Section 469.1782, for the purpose of special
laws extending the duration of a tax increment fmanCing district, the affected local governing units
include the City, the County of Hennepin (the "County"), and Independent SchQol District 270 (the
"School District").
WHEREAS, the Special Law specifically provides that subdivision 1 of the Special Law,
extending the duration of the TIP District, is effective upon compliance with the provisions of
Minnesota Statutes, section 469.1782, subd. 2 and section 645.021, and that subdivision 2 of the
Special Law is effective upon compliance with Minnesota Statutes, section 645.021.
WHEREAS, the City deems the Special Law to be in the best interests of the residents of
the City.
NOW, THEREFORE, be it resolved by the City Council ofthe City of Hopkins that:
1. The Special Law is approved and, upon certification of all other necessary
approvals, tax increment may be collected from the TIP District as provided for in the Special Law.
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. . 2. The City staff is authorized and directed to file with the Secretary of State, upon
receipt of the appropriate resolutions from the County and the SchoolBoard,a certificate stating the
essential facts necessary for valid approval, including a copy of the resolution of approval by the
City Council. The form of this certificate shall be consistent with that prescribed by the Attorney
General for this purpose.
Approved by the City Council of the City of Hopkins this 2nd day of December 2003.
Mayor
ATTEST:
City Clerk
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